South Star Mining Announces the Selection of Final Design and Phase 1 Engineering Construction Support Team for the Santa Cruz Graphite Project
Toronto, ON - TheNewswire - April 13, 2021 - South Star Mining Corp. (“South Star” or “the Company”) (TSXV:STS) (OTC:STSBF) is pleased to announce that it has awarded the contract for final engineering design and Phase 1 construction support services to MIPTEC Engenharia e Consultoria Ltda (“MIPTEC”). MIPTEC is based in Belo Horizonte and provides full-service engineering, design and consulting services focused on mining and mineral resource sectors as well as ports and logistics terminals. The scope of work includes value engineering/project validation for the previous design phase, preparation of the final design construction documents, construction engineering support services, as-built drawings and operations manuals. Final design work packages will be released progressively as they are completed, and the overall design schedule is estimated to be a total of 18 weeks. Project kick-off is scheduled to begin by the week of April 10th.
The Company has elected to internally manage the Phase 1 EPCM program, with MIPTEC providing the final design and engineering construction support services. The owner’s team will include all major engineering disciplines to oversee the EPCM project implementation program, construction supervision and quality control & assurance. Phase 1 operations for the 5,000 tpy pilot plant operations are fully licensed, and the Company is preparing to mobilize contractors in August 2021 with commercial production targeted for Q4 2022.
Richard Pearce, President and CEO of South Star, commented: “I am very pleased to announce that we have selected MIPTEC to provide final design and construction engineering support services. They have a great team, and I was impressed with their creativity and flexible design approach. We have recently contracted the General Manager to oversee the final design phase and ensure everything is in place for construction. We flew the site last week to get updated aerial imagery and precise topography for the final design. Geotechnical drill rigs are scheduled to mobilize in mid April. The team is taking shape, and we are pushing hard to keep everything advancing according to schedule. We are swiftly moving into the construction and production phases and intend to become the first new graphite mine in continuous commercial production in the Americas in over a decade. It’s a dream come true to see the plans taking shape, the team coming together and to be thinking about hiring construction support services and qualifying contractors. It’s a whole new mindset, and the team is very energized.”
South Star Mining Corp. is focused on the selective acquisition and development of near-term production projects in Brazil. South Star is driven to create fundamental value in the battery metals sector for clients and investors with real projects that have strong intrinsic financial and operating metrics, and that can be profitable throughout the resource cycle. South Star has an experienced executive team with a strong history of discovering, developing, building and operating profitable mines in Brazil.
The Santa Cruz Graphite Project (“the Project”), located in Southern Bahia, is the first of a series of battery metals projects that will be put into production. Brazil is the second-largest graphite-producing region in the world with more than 80 years of continuous mining. The Project has at-surface mineralization in friable materials, and successful large-scale pilot plant testing (>30t) has been completed. The results of the testing show that approximately 65% of Cg concentrate is +80 mesh with good recoveries and 95-99% Cg. With excellent infrastructure and logistics, South Star is carrying its development plan towards Phase 1 production projected in Q4 2022, pending financing. To learn more, please visit the Company website at http://www.southstarmining.ca.
This news release has been reviewed and approved by Richard Pearce, P. Eng, a "Qualified Person" under National Instrument 43-101 and President and CEO of South Star Mining.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, please contact:
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x251
Mr. Dave McMillan
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